Gold (xauusd): two inverse head and shoulders

Dec 5, 2025

Hi!

Gold continues to show constructive bullish behavior on the 1-hour timeframe, validated by consecutive inverse Head & Shoulders (iH&S) formations that developed around major support areas.

The first iH&S appeared near 4,173–4,180 USD, where price formed a clear left shoulder, deep head, and right shoulder inside a well-defined demand zone. The neckline was broken cleanly, confirming bullish intent. The projected target for this larger pattern lies in the 4,265–4,272 USD region (pink zone), which remains the ultimate upside objective as long as structure holds.

After the breakout, Gold retraced and created another smaller iH&S nested within the broader pattern. This second structure also built its head inside the same support region, highlighting strong buyer defense. Its neckline breakout signals a nearer target at 4,242–4,250 USD (green zone).

Gold is currently trading above the smaller neckline, retesting the breakout level. A successful retest followed by higher lows would likely fuel continuation toward the green zone, and eventually toward the pink zone, completing the larger pattern’s measured move.

Failure to hold above the neckline may lead to a deeper pullback toward 4,185–4,195 USD, but the bullish pattern remains valid unless the head area is breached.

Overall, structure supports a continuation of the uptrend as long as price remains above the neckline and key support levels.

Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.

Dec 5, 2025

Trade active

toward the target

Dec 5, 2025

Trade closed: target reached

The first target has been touched